Putrajaya: The extension of the mandatory retirement age can help civil servants increase their retirement savings, besides making it easier for them to pay off debts and cover living expenses after retirement. The move is also in line with a global trend that has seen many countries implement similar policies, according to two civil servant associations.
According to BERNAMA News Agency, Putrajaya Indian Civil Servants Association (IMAIYAM) president Dr. Sathiskumar K. Muthusamy highlighted that most civil servants make financial commitments such as house purchases and personal loans during mid-career. Consequently, many are unable to pay off these debts by retirement, with pensions insufficient to cover these commitments and other costs like children’s education and living expenses. Dr. Sathiskumar noted that extending the retirement age could provide relief to civil servants, helping them manage living costs and debt while reducing the number trapped in debt post-retirement.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling the 13th Malaysia Plan (13MP) at Dewan Rakyat, announced a review of the mandatory retirement age limit, aligning with Malaysia’s transition to an aging nation. Currently, the mandatory retirement age for civil servants is set at 60 years, which is also the minimum age for private sector workers under the Minimum Retirement Age Act 2012.
Dr. Sathiskumar suggested a flexible implementation of the policy, as not all sectors are suitable for a retirement age of 65. He mentioned that critical sectors like medicine and education could benefit since experienced professionals can still perform effectively. He also emphasized the need for mechanisms to monitor the performance and health of civil servants to maintain service quality and productivity.
National Union of Teaching Professions (NUTP) president Aminuddin Awang noted that Malaysia has one of the lowest retirement ages compared to Singapore and the Philippines. He stressed the importance of understanding that the extended retirement age would be voluntary, correcting any misconceptions about government imposition. While acknowledging potential short-term impacts on promotion and recruitment, Aminuddin emphasized the long-term benefits of retaining experienced civil servants.
Aminuddin proposed that the government establish a health screening and performance evaluation system to ensure only fit civil servants continue their service, providing a structured approach to managing the extended retirement age policy.